Agentic AI’s Grand Delusion: GPT-5 Shows We Still Lack the Foundation

Agentic AI’s Grand Delusion: GPT-5 Shows We Still Lack the Foundation

A conceptual image of Agentic AI or GPT-5, depicted as a grand but fragile structure built on a crumbling or missing foundation.

Introduction: Another day, another milestone in the relentless march of AI. OpenAI’s GPT-5 is here, lauded for its enhanced capabilities. But beneath the surface of the latest model improvements lies a persistent, inconvenient truth: our ambition for truly agentic AI vastly outstrips the foundational infrastructure needed to make it a real-world enterprise game-changer.

Key Points

  • The fundamental bottleneck for “true agentic AI” isn’t model capability, but the lack of mature, scalable, and cost-effective supporting infrastructure.
  • Despite improvements, GPT-5 represents an incremental, rather than radical, leap, forcing enterprises to grapple with complex integration and capacity challenges.
  • Agentic AI is at the “Peak of Inflated Expectations” on Gartner’s Hype Cycle, setting the stage for potential disillusionment unless foundational issues are rapidly addressed.

In-Depth Analysis

Gartner’s analogy of powerful cars lacking freeways perfectly encapsulates the current state of AI, and it’s a narrative we veteran columnists have seen play out time and again across various tech cycles. GPT-5 is, by all accounts, a more refined engine – better at coding, more adept with multimodal inputs, and showing subtle improvements in tool use and parallel task execution. Its larger context windows and lower per-token costs are welcome, practical advancements that will undoubtedly simplify certain RAG implementations and potentially reduce immediate operational expenses. However, these are refinements to the vehicle itself, not the construction of the promised superhighway of true, autonomous agentic intelligence.

The critical issue, as Gartner’s Arun Chandrasekaran rightly points out, is that enterprises are still running these “fast cars” on a network of unpaved, often dead-end, roads. The ability for GPT-5 to handle concurrent API requests or for more business logic to reside within the model itself demands a level of system architecture sophistication and real-time data orchestration that most organizations are still years away from achieving at scale. OpenAI’s move to sunset previous models, while framed as abstracting complexity, also reeks of a pragmatic response to a very real compute capacity crunch. Running multiple generations of powerful models simultaneously isn’t just a cost implication; it’s a physical constraint on a scale the industry hasn’t fully come to terms with yet.

Furthermore, while hallucination rates may be down by 65% – a commendable achievement – the amplified risk of misuse for sophisticated scams and phishing is a stark reminder that more capable models don’t inherently lead to safer applications without a commensurate investment in robust governance, auditability, and human oversight. The enterprise AI journey isn’t just about feeding more tokens into a smarter model; it’s about building resilient, auditable, and secure end-to-end systems that can truly leverage these capabilities without introducing unacceptable risk or spiraling costs. The “hybrid approach” to RAG, or the need for constant code review and prompt template audits, underscore that even with GPT-5, the development pipeline remains complex and human-intensive.

Contrasting Viewpoint

While the Gartner analysis accurately flags the infrastructure gap, one might argue that “radical progress” isn’t a single event but a cumulative sum of incremental steps. Every enhancement in model capability, no matter how subtle, incrementally pushes the boundary of what’s possible, acting as a forcing function for infrastructure development. Skepticism can sometimes overlook the underlying, often quiet, work happening in cloud providers, data centers, and specialized hardware firms to lay these very “highways.” Moreover, for many enterprises, even the current “potholed” roads offer new routes to efficiency they never had before. The challenge isn’t that the highway doesn’t exist, but that its construction is a massive, multi-year undertaking, and early-stage “cars” are already proving valuable enough to fund further development. To simply declare the road unbuilt risks dismissing the real, tangible benefits being realized in specific, narrow use cases today.

Future Outlook

The next 1-2 years will likely see continued incremental advancements in model capabilities, with a greater emphasis on specialization and cost-efficiency (the “nano” and “mini” models are a clear nod to this). However, the biggest hurdles for “true agentic AI” will remain squarely in the infrastructure domain. We’re talking about sophisticated orchestration layers, seamless real-time data pipelines, enterprise-grade security frameworks, and robust explainability and audit trails – the unseen plumbing and wiring that makes autonomous operations viable.

The market will probably witness a shakeout as companies emerge from the “Trough of Disillusionment” for agentic AI, pivoting from broad, ambitious deployments to tightly scoped, high-ROI applications where the benefits clearly outweigh the immense integration costs. Expect increased investment in AI governance, monitoring tools, and specialized tooling for prompt engineering and multi-agent system design. The future of enterprise AI isn’t solely about smarter models; it’s about building the complex, resilient, and deeply integrated “highway system” that can finally let these powerful engines truly deliver on their promise.

For more on the often-overlooked financial realities of deploying large-scale AI, revisit our column on [[The Hidden Costs of Enterprise AI Adoption]].

Further Reading

Original Source: Gartner: GPT-5 is here, but the infrastructure to support true agentic AI isn’t (yet) (VentureBeat AI)

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